Executive Order Signals Major Shift in Federal Cannabis Policy — Schedule III Rescheduling Accelerates

Trusted sources inside policy circles point to a major shift in federal cannabis policy following the December 19, 2025 Executive Order titled "Increasing Medical Marijuana and Cannabidiol Research." That order directed the Attorney General to expedite the rescheduling of marijuana from a Schedule I substance to Schedule III under the Controlled Substances Act — a process begun under the prior administration that had stalled for years.

What's critical here is that this directive empowers AG Pam Bondi to lead the rulemaking effort, not just talk about it. And unlike vague political rhetoric, the text of the order specifically puts DOJ on the hook to finish the administrative process — meaning it could include language around financial plumbing, including banking, custody, and institutional access for cannabis-related securities.

Cannabis Stocks to Watch

If that happens, it would be a sea-change for cannabis equities:

• Trulieve (TCNNF) – largest U.S. operator with strong cash flow
• Tilray Brands (TLRY) – cross-border footprint and consumer brands
• Canopy Growth (CGC) – research and extract capabilities
• Green Thumb Industries (GTBIF) – diversified retail and cultivation platform
• AdvisorShares Pure US Cannabis ETF (MSOS) – broad exposure to U.S. cannabis operators

These names are currently handicapped by federal Schedule I status, which makes banking, custodial services, and major exchange listings (NYSE/NASDAQ) difficult or impossible. But Schedule III opens the door to reduced counterparty risk, more liquidity, and institutional participation — especially if DOJ's rulemaking integrates language that clarifies banking requirements and custody treatment for OTC or mainstream trading vehicles.

What This Means for Investors

Right now, the order itself doesn't immediately change the law — it accelerates the regulatory process and directs agencies to finish the rescheduling procedure, including public rulemaking steps that could take months.

But that's exactly why this moment is so bullish: a formal rescheduling pathway with clear policy intent — combined with momentum from the December 19 executive action — increases the odds that federal regulators will finally tackle the long-standing banking and custody barriers that have kept cannabis stocks stuck on OTC markets.

This isn't just a policy rumor — it's a structural shift in motion.

Sources say it could be as early as this week — we shall see.